National Westminster Band corp said Thursday it sold a package of nonperforming real estate loans that were originally valued at $164 million to Daiwa Securities America Inc.

Officials of the New Jersey-based bank would not disclose the carrying value of the assets or the sale price. Realty experts say that problems loans sold in bulk are fetching about 50 cents on the dollar.

The deal will not have a material act on third-quarter earnings, Natwest officials said.

New Jersey Properties

The assets included about 150 loans and properties in New Jersey that were owned by Natwest's Granite State unit. Natwest, which also has a New York subsidiary bank, is the U.S. arm of London-based National Westminster Bank PLC.

The sale all but wipes out Natwest's problem real estate loans in New Jersey, the bank said, though it still has several million dollars in nonperforming realty loans that are owned by its New York bank.

As of June 30, Natwest's non-accrual loans totaled $790.7 million, or 5.59% of total loans. About $372 million of the total were nonperforming commercial real estate loans.

John Tugwell, chairman and chief executive officer, said in an interview that Natwest will soon complete a second bulk sale.

While Natwest will continue to add new nonperforming assets during the remainder of the year, Mr. Tugwell expects bulk sales and workouts to reduce nonperformers to around $500 million at yearend.

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